Vacants To Value for Investors: Timeline, Permits, Exit

Thinking about turning a Baltimore vacant into your next investment win? The opportunity is real, but the rules and timelines are different from a typical flip. You need a clear plan for how to buy, how to permit and inspect, and how to exit. This guide breaks down the process so you can move with confidence, protect your capital, and hit your targets. Let’s dive in.

What “Vacants to Value” means

Baltimore’s Vacants to Value is a policy umbrella focused on returning vacant and abandoned properties to use through code enforcement, receivership, city sales, demolition where necessary, and incentives. Get a quick overview of the program’s purpose and history in the city’s Vacants to Value initiative.

You can usually acquire V2V‑type properties in three ways:

• Receivership auctions. Court‑appointed receivers sell properties that carry Vacant Building Notices (VBNs). The main pathway is One House At A Time. You buy as‑is and must complete rehab to abate the orders.
• Direct city sales. DHCD lists city‑owned homes and lots in fixed‑price and open bid programs. Explore the Open Bid and Fixed Pricing programs.
• Tax sale or lien purchase. This is different from receivership and follows state law with its own risks and timelines. Review Maryland’s tax sale process.

Receivership exists in city code and allows the court to appoint a receiver to move a nuisance property to rehab or resolution. See the Building Code receivership section for context.

Your acquisition timeline

Actual timing depends on the case and condition, but One House’s buyer guidance outlines a common sequence.

Auction to settlement

• Receiver appointment to auction: about 30 days on average.
• Auction to court ratification: up to about 75 days while appeals and court processing run.
• Ratification to settlement: about 30 days for title work and closing.

These steps are typical in One House’s bidder guidance.

Settlement to U&O (habitable)

After closing, your clock starts. Receivers commonly expect you to obtain a Use & Occupancy (U&O) within 12 months of settlement. The U&O formally authorizes occupancy and removes the VBN. Plan for design, plan review, permits, construction, and multiple inspections before you get there. The city explains its process and review targets in DHCD’s E‑Permits guidance.

Historic‑district reviews, raze permits, or extra referrals can add time. Those special reviews are part of the city’s permit workflow noted in E‑Permits guidance.

Permits and inspections you’ll need

Most Baltimore rehabs on rowhouses or small multis involve:

• One‑ and Two‑Family Combo Permit for general building work.
• Trade permits: electrical, plumbing, and HVAC.
• Use & Occupancy (final approval to live in or rent).
• Raze permit if demolition is required.

DHCD outlines categories and submittal needs in its permit types and requirements.

About the U&O: only a valid U&O lifts a Vacant Building Notice. The city codifies seller disclosure of VBNs and the role of U&O in city code on VBN disclosure. Expect progress inspections during rehab and a final inspection set to secure your U&O.

Title, liens, and settlement basics

Receivership settlements are coordinated under court authority. Sale proceeds are applied in a set order to costs and eligible liens, and buyers receive title at settlement. Title exceptions can exist, so work with a title company experienced in receivership closings and confirm what is getting paid through the order of distribution in your case. One House explains this process in its How We Work overview.

Most receivership auctions require a certified deposit at the sale. One House’s posted terms commonly require a $3,000 deposit per property, with an increase to 10 percent if the price passes a threshold, and the balance due at settlement. See the latest terms in One House’s FAQ.

Budget and financing notes

These projects can pencil, but only with a realistic cash plan. One House uses bidder prequalification to screen capacity and experience, often expecting roughly $90,000 in available funds per property as a baseline for rehabbers. Your actual budget will vary.

Build your model with these line items:

• Purchase price and auction fees
• City and receiver settlement costs
• Unpaid municipal charges paid from proceeds at closing
• Construction, permits, and inspection fees
• Carry during rehab and contingency
• Selling costs or leasing costs for your exit

Exit strategies that work

Your exit should match the block, scope, and your capital plan.

• Rehab then sell to an owner‑occupant. Many local incentives aim to support this outcome. Confirm your U&O before you market as move‑in ready.
• Rehab then rent. After U&O, complete rental registration and required inspections per local rules.
• Rehab then sell to a nonprofit or community partner. City programs sometimes prioritize community outcomes in select offerings.
• Demolish then sell the lot or pursue new construction. This requires raze permits, site approvals, and zoning review, and is usually more capital intensive.

Due diligence checklist

Before you bid or offer, line up your facts.

• Pull a title commitment and tax history. Use a title company with receivership experience. See the receiver’s process overview.
• Check DHCD data for Vacant Building Notices and violations to know exactly what must be abated.
• Confirm zoning and whether a historic district applies. See E‑Permits guidance for referral triggers.
• Inspect during the preview window and get contractor estimates. Build a contingency.
• Prequalify with the receiver. One House explains requirements in its bidder guidance.

Keep your schedule moving

• Submit complete plans that match field conditions to minimize review cycles.
• Sequence trades so rough‑in inspections occur as soon as each phase is ready.
• If historic or planning approvals are needed, start them early.
• Book inspections as soon as eligible to avoid idle days.
• Track your 12‑month U&O expectation from day one.

Ready to invest in Baltimore?

If you want a local partner who understands receivership timelines, permitting, and exit strategies, we’re here to help you plan and execute with clarity. Reach out to SDS Group to talk through your next Baltimore investment.

FAQs

How long from a Baltimore receivership auction to renting or selling?

• Plan for about 3 months from auction to settlement on average, then several months for rehab, permits, and inspections to secure U&O, with receivers commonly expecting U&O within 12 months of settlement.

What is a Vacant Building Notice and how is it removed?

• A VBN is a city order tied to unsafe or unoccupied buildings. Only a valid U&O removes it, and sellers must disclose VBN status at sale per city code.

What deposit and funds are expected for One House auctions?

• Terms commonly require a certified deposit of about $3,000 per property at auction, potentially increased to 10 percent above certain price points, plus proof of funds and rehab experience during prequalification.

Which permits are typical for a Baltimore rowhouse rehab?

• Expect a One‑ and Two‑Family Combo Permit for building work, separate trade permits, and a final U&O. Demolition requires a raze permit.

How are liens handled at receivership settlement in Baltimore?

• Under court oversight, sale proceeds are applied to eligible costs and liens in order, and title transfers at settlement. Always confirm specific lien treatment with your title company.

Is buying a tax lien the same as receivership?

• No. Tax sale is a debt purchase with a separate redemption and foreclosure timeline under Maryland law. Receivership is a court sale tied to VBN enforcement and rehab obligations.